Number
250576
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. BAUMAN
Title
Substitute resolution amending the City of Milwaukee’s State Legislative Package to express support for State legislation relating to historic preservation tax credits.
Analysis
This resolution amends the City of Milwaukee’s State Legislative Package to support the modification of historic tax credits in the State of Wisconsin. Specifically, the resolution supports 2025 Assembly Bill 375, which removes federal requirements from projects only using state historic tax credits and removes the requirement that the State Historic Preservation Office recommend a project for federal approval if only state tax credits are being used. In addition, the proposed bill allows taxpayers to claim their entire tax credit for rehabilitation projects in one year, as opposed to 5 and sunsets the state credit for the rehabilitation of qualifying buildings that are not certified historic structures to align with the similar federal credit that was also sunset. Finally, the proposed bill allows a taxpayer to claim $3.5 million in tax credits for a single parcel, every 10 years, instead of only once.
Body
Whereas, The State Legislature is currently considering 2025 Assembly Bill 375, a bill modifying how historic tax credits work in Wisconsin; and
Whereas, The bill allows taxpayers to claim credits for the amounts spent to rehabilitate certified historic structures located in Wisconsin; and
Whereas, In general, a taxpayer may claim both federal and state credits for the same rehabilitation project; however, in some cases, a taxpayer may not be able to claim both credits due to differences in state and federal law; and
Whereas, Under current law, taxpayers may claim a credit equal to 20 percent of their qualified rehabilitation expenditures so long as the expenditures are at least $50,000, while federal law further requires the expenditures exceed the greater of the taxpayer’s adjusted basis in the p...
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